Retirement Planning - How To Maintain Purpose When You Retire

Updated on February 16, 2008

Phased Retirement As A Solution

It's true when retirement looms that many start to feel a little anxious. In the 21st century, that anxiety is just a little more pronounced.

Things have changed dramatically. Retirement planning meant having enough in your nest egg to see you through the retirement years. But people are living longer and many of those nest eggs are diminishing too quickly.

Phased retirement is a term which has made a little impact on impending retirees. It will mean a lot more to many over the next few years as the baby boomers start their migration out of the work force. First of all, despite claims baby boomers are generally wealthy types who love to splurge on new toys and vacations, the truth is, many are facing clouded retirement futures simply because of the lack of income.

Phased retirement is a method which will allow retiring baby boomers to work in a more relaxed schedule and continue to earn vital income to take care of daily living expenses. This will not only help wage and salary workers but also those who own small businesses. By selling their business and then staying on in a reduced time capacity either as a consultant or just as a way of utilizing one's experience, makes perfect sense.

Industry cannot afford to lose baby boomers in large numbers en masse. The expertise which will be lost is a little frightening and one way of retaining this experience is to offer them a phased retirement package which will be a win-win for both.

Retirement planning for those who need to continue working in some capacity should include phased retirement options. For those who will have the funds to sustain them during their retirement years, there is another issue brewing and it's to do with maintaining some sort of purpose in one's life.

Working a lifetime and then suddenly finding oneself grazing out in the pasture with other "golden oldies" can come as a bit of a shock to the system. Suddenly, there seems to be a void in a person's life and it's usually called purpose and meaning.

A new phenomenom is emerging among today's retirees. They really don't want to retire "cold turkey." Many are opting to go back to work in some capacity and it's not the income they're after, It's because it gives them some purpose in their later years.

Once the kids have "flown the coup" purpose becomes a major issue for future retirees. Work gives them this purpose because it makes them feel as if they are making a contribution, not only to society but to their own lives.

Retirement planning many years ago would have been based around having enough in the coffers to get you through retirement. Phased retirement wouldn't have even come into discussions. Watch the media over the next few years as industry gears for the massive migration soon to take place. The baby boomers are about to begin their exodus.